Saturday, October 25, 2014

Mining giant Rio Tinto extends CEO’s tenure

The company’s board has voted in favour of Mr Walsh and chief financial officer Chris Lynch continuing their roles, 18 months after taking up the positions. "Since their appointments early last year, Sam and Chris have led a transformation of the business and established a track record of delivering on their promises," chairman Jan du Plessis said.

Rio, the world’s second largest miner, made a $US5.1 billion underlying profit in the first half of 2014, after cutting $US3.2 billion in operating costs and lowering capital expenditure.

Both Mr Walsh and Mr Lynch are expected to move to open-ended contracts after Rio’s annual general meeting in early 2015, pending shareholder approval.

Mr Walsh’s initial contract was due to end on December 31, 2015 and Mr Lynch’s was due to end on February 28, 2017.

Both Mr Walsh’s and Mr Lynch’s pay packages will remain unchanged.

In May, shareholders voted in favour of a pay rise in line with inflation for Mr Walsh, who received a $US10 million-plus package in 2013. - AAP